Azure SDK v2.7 diagnostics issue is preventing publish/package
I don't remember the exact error we got but recently we had to add a storage account for diagnostics where previously we didn't. In your ServiceConfiguration you need a line like
<Setting name="Microsoft.WindowsAzure.Plugins.Diagnostics.ConnectionString" value="...."/>
I just had this same issue, but I was not missing the settings in Batavia's solution. I didn't see any other posts with the solution I found, so here you go:
The issue was that there was a file called "diagnostics.wadcfgx" referenced in the csproj of the offending project that was not present in the folder. Removing this item from the proj file resolved the issue.